Overview of Civil Penalty Provisions of MINER Act

New Civil Penalty Provisions

Effective April 23, 2007

This is an overview of changes to 30 CFR Part 100, Criteria and Procedures for Proposed Assessment of Civil Penalties that became effective on April 23, 2007. The significant changes made to this rule are explained below.

The rule implements procedures regarding the civil penalty provisions of the Mine Improvement and New Emergency Response Act of 2006, also known as the MINER Act, signed by President George W. Bush on June 15, 2006. The MINER Act contains three provisions related to civil penalties:

• Immediate Notification - establishes a penalty of at least $5,000 and up to $60,000 where an operator fails to notify MSHA within 15 minutes of an accident where a death, or injury or entrapment which has a reasonable potential to cause death, has occurred.
• Unwarrantable Failure - Sets a minimum penalty of $2,000 for any citation or order issued as an unwarrantable failure under section 104(d)(1) of the Mine Act and a minimum penalty of $4,000 for any order issued under section 104(d)(2).
• Flagrant Violations - Establishes a maximum civil penalty of $220,000 for “flagrant violations”.

The penalty provisions in the MINER Act became effective on June 15, 2006, when the Act was signed. In addition, the rule provides for a general increase in civil penalties for violations. It is applicable to all mines and contractors. The scope and major provisions of the rule include:

• Increased penalties: Increases civil penalties overall, targeting the more severe health and safety violations.
• Repeat violations: Adds a new provision to increase penalties for operators who repeatedly violate the same MSHA standards.
• Single penalty: No longer applies. Non-significant and substantial (non-S&S) violations formerly processed as $60 single penalty will now be processed as regular formula assessments.
• Special assessments: Removes the list of specific categories for special assessment. The new rule retains MSHA's authority to specially assess penalties for violations, as appropriate.
• Health and safety conferences: Provides 10 days for safety and health conference requests (no change from the previous rule) but now requires that requests be in writing and contain a brief statement why each citation or order should be conferenced.

The following is a section-by-section synopsis of the changes in 30 CFR Part 100.

100.3 Determination of penalty amount; regular assessment.

Old 100.4 Determination of penalty; single penalty assessment.

New 100.4 Unwarrantable failure.

100.5 Determination of penalty: Special assessment.

100.6 Procedures for review of citations and orders; procedures for assessment of civil penalties and conferences.

100.7 Notice of proposed penalty; notice of contest.

100.8 Service.